Consider that you are a project manager leading a critical project for a company in a fully projectised organisation

Consider that you are a project manager leading a critical project for a company in a fully projectised organisation. Three months ago, you replaced the previous project manager, who had been leading the project for over a year, before he resigned from the company. The project team consists of 60 people, who have been working on the project for more than 2 years. Of the 60 people, 40 are full-time on the project and the other 20 are shared across at least one other project. Originally, the project had an expected duration of 15 months but had to be extended due to several reasons, including scope creep and low team morale. In month 18 of the 15-month- expected duration, the project duration was increased to a total of 30 months, with this revised completion date 6 months from now. All seemed to be going well, until nine key people working on the project resigned within a week. You later found out that all the people who resigned have plans to launch their own company, apparently with funding from a competitor.

To address the current situation, prepare a document that addresses the following questions:

How should you deal with this situation? How would you feel about several team members resigning at almost the same time? As a project manager, how should you ideally react to such a situation?
Given the history of low team morale, how would you convey this situation to your team? Do you think that your leadership style will change from what it was before this development? Explain your answer.
What can you do to prevent the recurrence of a similar event in the future?